Understanding Square Footage: Does Basement Count in Home Evaluations?
When comparing homes, an essential element to consider is the square footage. However, it's important to understand whether the square footage includes the basement, especially when using it as a basis for home evaluations. This article delves into the nuances of square footage and basement inclusion to help you make an informed decision.
Importance of Square Footage in Home Evaluations
Home evaluations often rely heavily on square footage to provide a comparative analysis. However, the inclusion of the basement in the square footage can significantly influence the value of a property. Typically, only the habitable, heated, and cooled spaces are included in the square footage measurements during evaluations. The use of square footage for comparison purposes is common, yet it's crucial to recognize the specific rules and definitions used in different regions.
Basement Inclusion in Square Footage
The inclusion of the basement in the square footage depends on its condition:
If the basement is unfinished: It is generally not included in the square footage for evaluations. Unfinished basements provide minimal living space and do not significantly influence the value of the home. Additionally, they are not equipped with fixtures like doors, working bathrooms, or finished floors and ceilings, which are essential for comfortable living.
However, if the basement is finished: Then it can be included in the square footage and can contribute to the value of the home. A finished basement with accessible doors, full working bathrooms, and finished floors and ceilings can be called 'living space.' This space, if heated and cooled, is comparable to the upper levels of the home. The inclusion of a finished basement can add significant value, especially if it provides additional room for family living.
Comparing Homes in Different Conditions
When comparing two homes, the process can be complex. For example:
House A: Two-story home with kitchen and bedrooms on the main level, unfinished basement.
House B: Two-story home with kitchen and all bedrooms on the same level, finished basement.
Both homes have 2400 square feet of heated living space, yet they may not be worth the same. The larger main floor in House B adds more family living space compared to an extra room in House A. Therefore, House B could be worth more due to its layout and additional living area.
Another example:
House A: One-story home with a finished basement.
House B: One-story home with a walk-out basement.
Even though both homes have a total of 2400 square feet, the walk-out basement in House B can add more usable space, making it potentially more valuable than House A.
Disagreements and Personal Evaluation
Some parties may attempt to classify homes with different basement conditions as equal in value. However, it is essential to adhere to the strict evaluation methods commonly used by appraisers:
Two-Story Homes: A 2400 square foot home should be valued based on the size of its living space. A home with a larger main floor and a smaller secondary floor tends to be worth more than the opposite configuration, given the larger family living space.
One-Story with Basement: A home evaluated as a one-story with a walk-out basement tends to be more valuable than one without due to the extra usable space. This space can often be used for recreation or additional living areas, increasing the overall value of the property.
The Role of Evaluation Tools: Sources such as county records and building codes can help break down the house into "main floor footprint," "second floor square footage," and "basement level." Proper evaluation requires considering the individual components of the home to ensure accurate comparisons and valuation.
Conclusion
Understanding the factors that contribute to square footage and how basement inclusion influences home evaluations is crucial for making informed decisions. By breaking down the home and considering the specific conditions of the basement, you can better understand the value and worth of the property. Always strive for your own independent evaluation rather than relying solely on someone else's assessment.